1. ECONOMY 1979 - 1982 BY: BROOKE, STERLING, & AMBER

2. How did the weak economy affect peoples everyday life?  - January 1980, the U.S economy went into a great recession at the time. The oil prices increased.  - 1982, there was a huge bankrupt. Not only did if affect the business it affected the people who worked there. Everyone had to find the new jobs.  - January of 1981, the unemployment rate was 8.9%

3. …Continued  - The first 6 months of 1980, and 1981-1982 was partially caused by the Iranian oil embargo.  - The economy entered 1982 in a severe recession and labor market condition throughout the year. The unemployment rate reached 10.8% at the end of the year.

4. What were the GDP, unemployment, & inflation for each month during the worst year of the weak economy?

5. Interview someone who was alive during the time period you selected and find out how the weak economy affected their life?  - “Gas prices raised a lot and it caused people problems because majority or the people couldn’t afford it”. - Mom

6. What caused the weak economy in the year(s) you selected?  - There are many reasons and different examples why the economy went down in 1979-1982. In 1972 the main focus of the Government was on bank reserves and monetary aggregates rather than on credit conditions. In March 1980 the federal reinforced restraint by introducing selective credit controls. The borrowing and spending led to many different problems in the United States. It led to a huge decline of the economy. Not only did the economy decline it also had a huge problem with instability all because the government wanted to control it. As the government tried to revive the economy in 1980 the tightening by the government led to July 1981 and the worst post-war recession driven by high interest rates.

7. …Continued  - In 1982 the government ended it’s Monetarist experiment when it stopped the high interest rates and slowed money supply growth which then triggered unemployment, loan defaults and bankruptcies.

8. What broke the cycle and helped make our economy stronger?  - After 1982, the government developed a new monetary policy. The Federal government no longer tried to keep short term interest rates artificially low, but established fixed ranges. These ranges are based upon inflation, commodity prices and the exchange rate. This new way of controlling the economy led to a lower growth path without going into recession. When they acted early, by adjusting short term rates, they were able to control inflation early before it got to disaster levels.

9. What people and places were affected most by the weak economy?  - From 1979-1982, people 16-24 had the lowest rate of unemployment.

10. …Continued  - From 1979 – 1982, Men had a higher unemployment rate than women.